Running certain types of expenses through an S Corp versus a disregarded entity doesn't change treatment or ability to deduct. 

Office time pricing and ordering materials , time spent obtaining and paying for permits , time spent scheduling subs , time spent consulting with the customer , time spent running for small materials .

Have your agent run comps for the last 90 days, see what type of finishes the houses had, and look at DOM to see how long it will take you to sell.

Start by running the numbers through a comprehensive rental analysis calculator (the one on BP is great), and get a picture of what your real cash flow picture looks like after you account for *all* expenses.I don't know what market rent is in your area, but if you have one or both units at below market value, you should definitely find a way to increase them.But, my gut says this property is still going to struggle to cash flow.

Plus with 6 units up & running complete with all bldg codes it does well enough.

There is a cost to turn over a unit, usually runs a month or a month and half in rent.

What is it really like to run a PM company?

You know how the property is run since you live there and it sounds like it's in an appreciating location.

Has anyone else run into this issue?

I’m looking into alternative methods to house having and MFH run for $700k+ out here.At the moment, I live in a detached garage converted into a 600sf 1bd/1bth.Since the 700k price point for a duplex with max 3bd/2bth unit to rent it out of question for me, I was thinking of the possibility of picking up a smaller house with the possibility of converting a garage or building a separate addition that my wife and I would then be able to live in while renting the main house.I know CA is becoming very favorable towards ADU’s now a days and was wondering on if this could qualify as a primary residence for myself as well as me be able to use potential rental income for me to be able to qualify for a loan.Still new to BP and REI, I couldn’t find a google answer on this, so any help would be appreciated.Thanks!